New Delhi, Feb 11 (NationPress) Prime Minister Narendra Modi emphasized the potential of carbon capture technology to spearhead India's forthcoming steel revolution as the nation intensifies its journey towards a Net Zero 2070 goal, backed by strategic investments and hydrogen initiatives that promote growth, global competitiveness, and pave the way for a Viksit Bharat.

In reference to an article by Union Steel Minister H.D. Kumaraswamy, PM Modi described the current phase of India's iron and steel sector as pivotal in its evolution. As the world's second-largest producer of crude steel, generating approximately 152 million tonnes (MT) in FY 2024-25, this sector is crucial for India's economic development, infrastructural enhancement, and job creation. The aim is to achieve 300 MT of crude steel capacity by FY 2030–31 under the National Steel Policy 2017, with a long-term vision of reaching 500 million tonnes by 2047, ensuring steel's central role in India's industrial ambitions.

However, the minister highlighted that steel production is both energy and emissions-intensive. The Indian steel industry predominantly utilizes blast furnace and coal-based direct reduced iron production methods, relying heavily on coal as an energy source and reducing agent, which contributes about 10 to 12 percent of the nation's total greenhouse gas emissions.

Tackling this challenge is essential not only for achieving Net Zero by 2070 but also for maintaining the competitiveness of Indian steel in a world that is increasingly focused on carbon emissions. The government is laying the groundwork for a substantial shift towards cleaner steelmaking, as noted by the minister.

The introduction of the green steel taxonomy is a significant step forward, establishing emission intensity benchmarks (under 2.2 tCO2e/t-fs) and offering a transparent framework to classify and reward low-emission steel products as ‘green steel’ with ratings of 3 to 5 stars. This clarity in policy can stimulate demand for cleaner steel across various sectors such as construction and manufacturing, encouraging producers to invest in technologies that reduce emissions.

Moreover, Kumaraswamy highlighted that the Steel Ministry has received Rs 455 crore under the National Green Hydrogen Mission to explore the use of green hydrogen in steelmaking, indicating a strong commitment to innovative technologies that can transform steel production in the coming years. These initiatives signify a growing acknowledgment that decarbonizing steel is crucial for India's comprehensive climate and industrial strategy.

He noted that these efforts will expedite the production of low-carbon steel; however, to reach Net Zero, the Indian steel sector is also pursuing carbon capture, utilization, and storage technologies. In this context, the allocation of Rs 20,000 crore in the Union Budget to pilot carbon capture technologies across five sectors, including steel, signifies a critical policy intervention. For the steel industry, carbon capture is vital for achieving complete emission elimination, a feat that remains challenging despite advances in energy efficiency and renewable energy use.

Carbon capture systems present a straightforward and effective means to mitigate these process-related emissions. By capturing carbon dioxide from blast furnaces and direct reduced iron operations before it escapes into the atmosphere, CCUS technologies can significantly lower emissions while allowing existing facilities to function. This makes CCUS an invaluable asset for India, where a substantial number of steelmaking facilities will remain operational for decades to come, according to the minister.